Under the operating agreement that would begin in January, Suez Water would pay the city an annual concession fee of $1 million over the 20-year contract. Three years still remain on the existing operating agreement, which expires in 2019, but the city has been negotiating a new deal since last year.

It’s unclear whether the funds raised through borrowing would be earmarked for anything specific or simply go into the city’s general fund. The loan agreement with the UCIA stipulates that the $1 million annual concession fee payments would be used to repay the loan, according to the guaranty ordinance (O-25-16).